What is a Modular Home?

Modular Home

Modular homes, also known as factory-built or prefabricated homes, are one of the many options homebuyers can build when they choose a construction loan. There are a few differences than stick-built and manufactured homes. In this article, we are going to look at some of the reasons buyers may or may not want to pursue this type of build.

How does a Modular Home Compare to a Stick-built or Manufactured Home?

Like a manufactured home, a modular home is built in a factory and shipped to the property. But unlike a manufactured home, only the individual rooms are constructed. After the parts are shipped, the house is then assembled on-site.

Because of this, every room is customizable. Whatever design a buyer has in mind, they can have the home built the way they covet. This includes:

  • Architecture Style
  • Color
  • Windows
  • Utilities such as heating, ventilation, and air conditioning

Modular homes cost more than manufactured homes, but they appreciate in value, just as much as stick-built homes.

Modular homes can be built much faster than stick-built. It only takes a few weeks, rather than a few months. Manufactured homes can be delivered within a few days, but buyers miss out on designing their home the way they want.

Be aware that although modular homes many seem quicker to build and cheaper than a regular constructed home, the individual rooms have to be shipped to the property. Travelling all the way across the US is an expense some homeowners fail to take into consideration.


The Benefits of a Modular Home

  • Saves on time
  • Buyers don’t have to manage architects, engineers, and construction workers
  • Cost effective
  • Can be financed through the manufacturer

The Downsides of a Modular Home

  • Tend to have a longer sales cycle
  • Land has to be purchased beforehand
  • Less customizable than stick-built


More Mortgage Loan Info

Contact Us today if you would like to discuss the purchase process further or if you have any inquiries about our product offerings. If you do not have any questions and are ready to submit your information for a loan decision, please Apply Now.